FORT LAUDERDALE, Fla., Aug. 21, 2018 (GLOBE NEWSWIRE) -- Kaya Holdings, Inc. (OTCQB:KAYS), filed its Quarterly report after
close of market yesterday afternoon.
Developments include higher revenues, additional financing and the signing of a preliminary agreement for the acquisition of a
12,000 square foot grow and manufacturing facility that will enable the Company to begin feeding the Kaya Shack™ supply chain
beginning November 2018.
Revenues. We had revenues of $291,133 for the three months ended June 30, 2018, as compared to revenues of
$ 199,790 for the three months ended March 31, 2017, and revenues of $546,498 for the six months ended June 30, 2018, as compared
to revenues of $ 344,651 for the six months ended March 31, 2017. That’s a 45% year-over-year increase in revenues for Q-2 of 2018
versus 2017, and a nearly 60% year-over-year increase in revenues for the first six months of 2018 versus the same period of
2017.
The increase is largely due to the fact that in 2017 our Portland Store was unable to process recreational sales for the first
quarter due to a delay in receiving our Portland City Licensing. As a result, revenues from legal recreational sales were largely
generated from retail sales at one outlet during most of the 2017 period, as compared to three outlets in the comparable period in
2018. All four of the Company’s retail locations have now received full OLCC licensing.
Financing. During the first six months of 2018, the Company received over $1.155 million in financing for
its operations- a total of $855,000.00 in financing from the Cayman Venture Capital Fund (CVCF), its Institutional Financing Lender
and another $300,000 from private placement stock subscriptions. That’s a total of approximately $4.2 million from CVCF alone
since the end of 2016, with an additional $5.3 million in additional funding due from them over the next three years pursuant to
the current agreement. Additionally, the Company has begun to develop access to other sources of long-term investment capital, some
details of which are in the 10-Q along with the details of the CVCF Funding Agreements.
Preliminary Agreement to Purchase Eugene, Oregon Marijuana Grow and Manufacturing Facility in $1.55 Million
Deal. On July 31, 2018 KAYS announced that it had entered into a preliminary agreement to purchase a Eugene, Oregon
Marijuana Grow and Manufacturing Facility in a $1.55 million deal. The deal includes an asset acquisition agreement to purchase a
12,000 square foot indoor marijuana grow and manufacturing facility with a current production capability of 800 pounds of high
quality medical and recreational cannabis annually. The seller also holds a production license for the manufacture of extracts,
oils and edibles, as well as the machines and equipment necessary to begin production and processing, which will be included as
part of the real estate purchase. To date the parties have completed the first stage of the transaction for $250,000. The funds are
earmarked for capital improvements to the facility to provide for increased grow production and more efficient product
manufacturing.
Kaya Farms™ Medical and Recreational Marijuana Grow and Manufacturing Complex in Linn County,
Oregon. While KAYS hasn’t yet gained an approval for the site plan review for the indoor and outdoor marijuana grow
operation on the 26.50-acre property, the case is proceeding through the system and KAYS’ attorneys have requested a hearing before
the Land Use Board of Appeals (LUBA) and is awaiting a hearing date. KAYS’ land is zoned Exclusive Farm Use (EFU), and
pursuant to Linn County Code (LCC) Section 928.310(B)(1), indoor and outdoor marijuana production operation is a use allowed
outright as a farm use on the subject property, and we are cautiously optimistic we will prevail and begin to set up growing
operations at the farm in 2019.
“We continue to focus on establishing and strengthening our core strategic goals; a significant retail base for access to end
customers, control of production to control costs and selection, and strong, competitive brands,” stated Kaya Holdings CEO, Craig
Frank. “We have taken the steps necessary to accelerate our time to production and will continue to seek ways to lower costs while
increasing sales.”
A copy of the Company’s Quarterly Report on Form 10-Q as filed with the SEC, is available online
at www.sec.gov
To see video of the Kaya Farms™ (Architect’s Project Rendition) please go to: https://www.dropbox.com/s/3po31ksdilcl9l9/Kaya_Farms%20Final.mp4?dl=0
To see video of the Kaya Shack™ OLCC Licensed Stores please go to: https://www.dropbox.com/s/49i5emi3wc0ha0d/Store%20Tour%20Final%20%28hi-res%29.mp4?dl=0
About Kaya Holdings, Inc. (www.kayaholdings.com)
KAYS (OTCQB:KAYS), through subsidiaries, produces, distributes or sells legal premium medical and recreational cannabis products,
including flower, concentrates and oils, and cannabis-infused foods. In 2014, KAYS, became the first publicly traded company to own
and operate a Medical Marijuana Dispensary. KAYS presently operates four Kaya Shack™ OLCC licensed marijuana retail stores to
service the legal medical and recreational marijuana market in Oregon (www.kayashack.com). Additionally, KAYS recently acquired a 26 acre parcel which it has
targeted for development of the Kaya Farms™ Medical and Recreational Marijuana Grow and Manufacturing Complex.
IMPORTANT DISCLOSURE KAYS is planning execution of its stated business objectives in accordance with
current understanding of State and Local Laws and Federal Enforcement Policies and Priorities as it relates to Marijuana (as
outlined in the Justice Department's US Attorney General Jeff Sessions Memo dated January 4, 2018, and subsequent commentary from
US Attorney for the District of Oregon Billy Williams), and plan to proceed cautiously with respect to legal and compliance issues.
Potential investors and shareholders are cautioned that KAYS and MJAI will obtain advice of counsel prior to actualizing any
portion of their business plan (including but not limited to license applications for the cultivation, distribution or sale of
marijuana products, engaging in said activities or acquiring existing Cannabis production/sales operations). Advice of counsel with
regard to specific activities of KAYS and MJAI, Federal, State or Local legal action or changes in Federal Government Policy and/or
State and Local Laws may adversely affect business operations and shareholder value.
Forward Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words
"believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that
could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such
differences include, but are not limited to, acceptance of the Company's current and future products and services in the
marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products,
competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with
the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update
these statements for revisions or changes after the date of this release.
For more information contact Investor Relations: 561-210-7664
